Bitcoin is facing a tightening supply due to a combination of factors. By 2025, 93% of all Bitcoin will be mined, and the recent halving has cut miner rewards, leading to fewer new coins entering circulation. At the same time, many long-term holders are keeping their coins in cold storage, with about 70% of the supply not moving for at least a year. Michael Saylor's company now holds over 2.75% of the total Bitcoin supply, raising concerns of a potential supply shock as liquidity diminishes. Institutional demand is increasing as more companies invest in Bitcoin, with significant inflows into spot ETFs leading to coins being moved into cold storage, further tightening market supply. Critics raise concerns about the consolidation of Bitcoin ownership among a few large entities, challenging the original ethos of decentralization. As of June 2025, Bitcoin's supply dynamics, reduced miner rewards, and institutional accumulation signal a potential supply crisis. Though Bitcoin won't 'run out,' trading efficiency may suffer due to low available supply, resulting in increased price volatility if demand continues to rise.

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